REG - Aura Energy Limited - Tiris Uranium Project Update

Aura EnergyAnnouncement

24/03/2025 07:00

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RNS Number : 8343B  Aura Energy Limited  24 March 2025

 

 

                                                                                                     24 March 2025
Tiris Uranium Project - progressing towards production.

Aura Energy Limited (ASX: AEE, AIM: AURA) ('Aura' or the 'Company') is pleased
to provide an update on the ongoing development of its Tiris Uranium Project
(Project) in Mauritania. The Company continues to advance the Project towards
production, making significant progress across key development requirements
including water access, leadership appointments, engineering, and progressing
funding options.

Aura Energy Managing Director, Andrew Grove, commented:

"The Tiris Uranium Project is advancing well towards execution readiness, and
we are pleased to see significant progress across key development areas,
especially with multiple funding opportunities. Securing a water supply,
strengthening our operational leadership, and making significant strides in
engineering and funding are all crucial steps as we move towards production.
We remain committed to delivering long-term value for our shareholders while
supporting the growing global demand for clean nuclear energy and developing a
new industry and new uranium province in Mauritania which will create
significant long-term benefits for the country and all stakeholders."

Water Supply confirmed by hydrological studies

Aura has successfully completed extensive hydrogeological studies at the Tiris
Uranium Project, confirming the availability of sufficient water resources to
support future operations. Recent drilling 1 , pump testing and aquifer
modelling by hydrogeological specialists Knight Piésold Consulting (Knight
Piésold) has defined a ground water supply of 74 L/s, 57% in excess of the
Project's water requirements (47 L/s). Ground water supplies include 44 L/s
from the Touadeni Basin and 30 L/s from the C22 borefield.

Considering the potential for spare total capacity from multiple borefields
with high groundwater prospectivity, the tested high prospectivity, especially
in the Touadeni Basin, and the availability of several options to
significantly expand current borefield size, as well as to add additional
borefields over an available laterally extensive area as required, there is
expected to be sufficient groundwater available for the Project life. Refer to
Appendix 1 for more details.

Appointment of General Manager Operations

Aura is pleased to announce the appointment of Mohamed Sid'Ahmed as General
Manager Operations (GMO) for the Tiris Uranium Project. A Mauritanian national
and experienced mining executive and mining engineer, Mohamed brings extensive
technical, operational and management expertise from both national and
international projects. Most recently he was GMO of Leo Lithium's Goulamina
lithium mine in Mali where he successfully led the mine's development,
operational readiness and operations of the mine. Previously Mohamed held
executive roles with Kinross at the Tasiast Gold and Teranga Gold Corporation
Sabodala Gold Mine in Senegal. His appointment strengthens Aura's operational
leadership as the Company progresses towards production.

Funding Options Advancing

The Company has made significant progress with potential financiers and
strategic partners to secure funding for the development of the Tiris
Project.  Aura, along with its debt and strategic investment advisors, Orimco
and Macquarie, continues to actively pursue these funding opportunities.
However, at this time the proposals remain non-binding, confidential and not
yet at a stage where they can be announced to the market.

Aura has engaged a western sovereign development bank to provide potential
debt funding covering approximately 50-60% of the total project funding
requirements. The bank is currently conducting due diligence and is scheduled
to visit the Project in April 2025, with the goal of securing credit approval
by mid-year.

Independent technical experts RPM Global, have completed its initial due
diligence review.

Discussions with potential strategic equity investors are also progressing,
with due diligence and term sheet negotiations underway. These processes are
expected to align with the bank's credit commitment timeline.

While the funding timeline has been extended, substantial progress has been
made. Meanwhile, development and engineering activities are continuing to
progress in accordance with the overall development schedule.

Project development update

Engineering activities at Tiris remain on track for delivering the Project in
early 2027. Focus areas include:

§ Basic engineering with Wood on schedule to be completed in July 2025

§ Process flowsheet locked with only minor amendments to the Front End
Engineering Design (FEED) Study 2  flowsheet

§ The development procurement and contract Expressions of Interest (EOI) and
Request for Proposal (RFP) process commenced within Mauritania (receiving over
190 responses) and internationally

§ Vendor test work commenced for performance guarantees

§ Refining Project mass and water balances

§ Detailed pumping and pipe design underway

§ Piping and Instrumentation Diagram (P&ID) development underway

§ Power optimisation study received

§ Dynamic simulation commenced

§ Detailed Project execution planning well advanced

Aura continues to have collaborative and supportive engagement with the
Mauritanian government at all levels as we advance the Project towards
production in 2027. Licensing has commenced for the water supply and airstrip
registration as well as discussions with the Gendarmerie with respect to
future site and uranium oxide transport security. The ESIA and Project
operating plans are also being updated to reflect the evolution of the Project
and current international performance standards.

Next Steps

Aura Energy remains focused on de-risking and advancing the Tiris Uranium
Project towards production. In the coming months, the Company will:

§ Progress discussions and support financiers to deliver Project funding

§ Advance Project engineering

§ Advance Project execution planning

The Company will continue to provide regular updates as developments progress.

ENDS

This release has been approved by the Board of Aura Energy Ltd.

This Announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").

For further information, please contact:

 Andrew Grove                                   SP Angel Corporate Finance LLP  Tamesis Partners LLP

 Managing Director and CEO

                                              AIM Nominated Adviser           AIM Sponsored Broker
 Aura Energy Limited

 agrove@auraee.com (mailto:agrove@auraee.com)   David Hignell                   Charlie Bendon

 +61 414 011 383

                                              Adam Cowl                       Richard Greenfield

                                                Devik Mehta                     +44 203 882 2868

                                                +44 203 470 0470

 

About Aura Energy (ASX: AEE, AIM: AURA)

Aura Energy is an Australian-based mineral company with major uranium and
polymetallic projects in Africa and Europe.

The Company is focused on developing a uranium mine at the Tiris Uranium
Project, a major greenfield uranium discovery in Mauritania. The 2024 FEED
Study 3  and Production Target Update 4  demonstrate Tiris to be a near-term
low-cost uranium mine producing 2Mlbspa U(3)O(8) over a 25-year mine life with
excellent economics and optionality to expand and to accommodate future
exploration success.

Aura plans to transition from a uranium explorer to a uranium producer to
capitalise on the rapidly growing demand for nuclear power as the world shifts
towards a decarbonised energy sector.

Beyond the Tiris Project, Aura owns 100% of the Häggån Project in Sweden.
Häggån contains a global-scale 2.0Bt vanadium, sulphate of potash (SOP) 5 
and uranium 6  resource. Utilising only 3% of the resource, a 2023 Scoping
Study 7  outlined a 17-year mine life based on a 3.6Mtpa production rate.

Disclaimer Regarding Forward-Looking Statements

This ASX announcement (Announcement) contains various forward-looking
statements. All statements other than statements of historical fact are
forward-looking statements. Forward-looking statements are inherently subject
to uncertainties in that they may be affected by a variety of known and
unknown risks, variables and factors which could cause actual values or
results, performance or achievements to differ materially from the
expectations described in such forward-looking statements. The Company does
not give any assurance or guarantee that the anticipated
results, performance or achievements expressed or implied in those
forward-looking statements will be achieved.

The Company has concluded that it has a reasonable basis for providing the
forward-looking statements and production targets included in this
announcement and that material assumptions remain unchanged. The detailed
reasons for this conclusion are outlined throughout this announcement, and in
the ASX and AIM announcements:

1.   29 March 2023 - Tiris Uranium Project Enhanced Definitive Feasibility
Study

2.   28 February 2024 - Aura's Tiris FEED Study returns Excellent Economics

3.   11 Sep 2024 - Updated Production Target Improves Economics at Tiris

4.   13 Dec 2024 - Tiris Uranium Project Alternative Production Targets

The Company confirms that it is not aware of any new information materially
affecting the information included in the ASX and AIM announcements:

1.   12 June 2024 - Aura increases Tiris Mineral Resources by 55% to
91.3Mlbs U(3)O(8)

2.   20 Dec 2024 - Substantial increase in Tiris Uranium Project Ore
Reserves

All material assumptions and technical parameters underpinning the Tiris and
Häggån Project Mineral Resources Estimates continue to apply. The Company
confirms that the form and context in which the Competent Person's findings
are presented have not been materially modified from the original market
announcements.

 

 

 

 

 

 

 

Appendix 1 - Water drilling

Knight Piésold was requested to support Aura with a review of existing work
and evaluation of previously identified groundwater sources, and to undertake
additional exploration studies to define supplementary project scale
groundwater supply options within a 150 km radius from the proposed Tiris
Uranium Project processing plant, Figure 1.

Three exploration areas were identified in preliminary desktop studies, these
being:

§ The process plant area

§ The previously explored and drilled C22 borefield area, approximately 20 km
from the processing plant

§ The Touadeni Basin area 100 km to 120 km to the south of the processing
plant

A groundwater exploration drill programme was designed and executed in 2024,
including drilling and aquifer testing of successful exploration bores at the
three identified target areas. A total of 26 exploration bores were drilled in
2024 at the Touadeni Basin area, 17 bores at the C22 area and 6 bores at the
process plant area. Successful bores were drilled at the C22 and Touadeni
areas, with drilling airlifts ranging up to about 15 L/s (54 m3/hr) at the
Touadeni Basin, and up to about 11 L/s (39 m3/hr) at the C22 area and detailed
in the release dated 16 Dec 2024 - Substantial increase in Tiris Uranium
Project Ore Reserves.

A number of the successful boreholes were selected for long term pump testing,
nine at Touadeni Basin and four at the C22 borefield. At each borehole four
60-minute tests (step tests) were conducted before the constant rate test
(CRT) commenced, to determine the flow rate for the 24-hour CRT.

Drilling, pump testing and aquifer modelling by Knight Piésold at both the
Touadeni Basin and C22 borefield confirmed a combined ground water supply of
74 L/s (2.3 GL/annum or 266 m(3)/hr). This exceeds the Project's water demand
of 47 L/s (1.5 GL/annum or 169 m(3)/hr) by 57%, ensuring spare capacity.

§ C22 borefield area - 30 L/s (109 m(3)/hr) - conductivity between 9,500
μS/cm and 20,000 μS/cm

§ Touadeni Basin - 44 L/s (158 m(3)/hr) - conductivity between 700 μS/cm and
13,900 μS/cm

Several additional high-potential groundwater targets remain unexplored at the
C22 borefield, Touadeni Basin and process plant sites. Furthermore, the
broader region offers significant opportunities for further exploration in all
three areas, particularly the Touadeni Basin's sandstone and dolomite
formations. These formations produced the highest producing bores in the 2024
exploration program, as indicated by both initial drilling and aquifer
modelling results.

With multiple borefields demonstrating strong groundwater potential, proven
high yields in the Touadeni Basin, and opportunities for expansion across an
extensive lateral area, the available groundwater supply is expected to be
sufficient for the Project.

Water sample analysis is ongoing and is being integrated into the project
flowsheet and design. Based on positive findings, detailed pipeline and
pumping designs are underway. Additionally, comprehensive groundwater
management and borefield development plans are being prepared. Licensing for
the identified borefields has also commenced.

Figure 1: Location plan of the Tiris Uranium project hydrogeological
evaluation

 

 1  ASX and AIM Release: 16 Dec 2024 - Substantial increase in Tiris Uranium
Project Ore Reserves

 2  ASX and AIM Release: 28 Feb 2024 - FEED study confirms excellent economics
for the Tiris Uranium Project

 3  ASX and AIM Release: 28 Feb 2024 - FEED study confirms excellent economics
for the Tiris Uranium Project

 4  ASX and AIM Release: 11 Sept 2024 - Updated Production Target Improves
Economics at Tiris

 5  ASX and AIM Release: 10 Oct 2019 - Häggån Battery Metal Project Resource
Upgrade Estimate

 6  ASX and AIM Release: 22 Aug 2012 - Outstanding Häggån Uranium Resource
expands to 800 million pounds

 7  ASX and AIM Release: 5 Sept 2023 - Scoping Study Confirms Scale and
Optionality of Häggån

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